According to sources, the American investment bank Morgan Stanley let go of 2% of their global employees on Tuesday.
According to sources, Morgan Stanley’s recent moves will affect approximately 1,600 of the company’s 81,567 employees. This encompasses almost every corner of the global investment bank. By doing this, Morgan Stanley is following in the footsteps of its rival Goldman Sachs as well as other companies such as Citigroup and Barclays who have also brought back the annual exemption for underperformers – a “ritual” that was suspended during the coronavirus pandemic.
Banks typically fire 1% to 5% of their poorest performing employees before awarding bonuses to the rest, ensuring that more money is available.
Put on hold in 2020 After the pandemic caused a two-year increase Federal Reserve’s aggressive rate hikes stopped most deals this year. The last time the company let workers go was 2019.
The New York-based company, with its large wealth management division and top-tier trading and advisory operations, is well known. According to sources, financial advisors are one of the few categories of workers exempt from recent cuts. This may be because they make money by managing client assets
Last week, Morgan Stanley Chief Executive Officer James Gorman told Reuters that the bank was getting ready for “modest cuts” in staff numbers, but wouldn’t give any specifics about when or how many separations there would be.
